Although the City of Cape Town has seen some mild slowing in average house price growth in recent quarters, at 14.1% year-on-year this market remains very strong. The mild slowing in average house price growth has been fairly broad-based, taking place in 9 of 12 regions of the City.
We remain of the belief that affordability has become a mounting challenge, especially for new entrants to the home ownership markets in the City, but even possibly to a portion of aspirant “semi-grants” from other regions looking to relocate to the popular Western Cape region. This will probably not stop the migration of repeat home buyers to that region, from other major South African regions, but may indeed slow it down somewhat.
The Atlantic Seaboard residential market remains very hot, and as at the 1st quarter did not appear to have taken part in the broader slowdown.
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